Understanding Your Motor
Insurance Premium

Claims

Naturally, you'd expect one of the largest parts of the premium collected is used to help pay out claims. Responding to claims is an important part of what we do to help protect what matters to you.

Government Taxes & Charges

A part of the premium goes towards government taxes and charges. After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy is then applied.

Reinsurance

A part of the premium collected goes towards paying our insurance premium to reinsurance providers. We purchase additional cover of reinsurance to protect against the exposure to large scale events such as fires, storms (including hail), floods and cyclones. This helps us maintain our ability to payout claims.

Profit

Like any business, we need to make a profit to ensure we can continue running our business year after year. Our profit can vary significantly from year to year depending on whether there were large scale events like storms, floods and cyclones.

Expenses

Every business has operating costs that enable them to continue their operations and service their customers. That's why a percentage of the insurance premium goes towards the operating cost of running our business. We also invest in the technologies and products that improve the services we provide to you.

Agreed Value (not applicable to third party legal liability cover)

The agreed value that your vehicle is insured for affects your premium. For example, luxury cars can have higher premiums as they cost more to replace as opposed to less expensive cars.

Type of Vehicle

The type of vehicle you have has a significant impact on your premium. This is because the cost of replacement parts varies depending on the make and model of vehicle you have.

Address Where the Vehicle is Kept Overnight

The place where your vehicle is kept can impact your premium. Generally, a higher population density in an area means more traffic and therefore, a higher chance of an incident occurring. Certain areas with higher risk of theft, vandalism and other similar incidents will also affect the premium.

Driver Age

A driver's age and experience can affect the likelihood of having an accident or claim. Generally, more experienced drivers have fewer accidents.

Claims

A premium may change depending on the total amount of claims we receive each year across all policies. If we receive more claims than expected, premiums can be impacted.

Government Taxes & Charges

After we have calculated the amount to cover your insurance policy, any applicable stamp duty, GST, charge and levy is then applied.

Multi Vehicle Discount

You may be eligible for a premium discount, where you insure two or more vehicles on the same Shannons policy.

Discounts are also a factor that can affect your premium. Any discounts are usually calculated and applied before the application of government taxes and charges.

Discounts do not apply to the Shannons Roadside Assist optional cover.

Discounts do not apply to Shannons NSW CTP Green Slip Insurance policies.

Our policies may be subject to minimum premiums.

To make changes to your policy, log in online to your account or give us a call on 13 46 46

Flexible Excess

You may be able to choose a 'Flexible Excess' that applies in addition to your 'Basic Excess' to reduce your premium on your regular use motor vehicle.

Limited Use Cover

If you don't drive your car regularly, special premium rates may be available.